Effect of Environmental Policy Incentives on Growth of Green Entrepreneurship in Nyarugenge District, Rwanda

Hellen Kamasanyu, & Jean Dieu Dushimimana
University of Kigali
Email: hellenkamasanyu72@gmail.com

Abstract: This study examined the effect of environmental policy incentives on the growth of green entrepreneurship in Nyarugenge District, Rwanda. Specifically, it examined the effect of financial incentives on the growth of green entrepreneurship. The study employed a descriptive and correlational research design using both quantitative and qualitative approaches. The target population comprised 395 individuals, including green enterprise owners, environmental officers, policy implementers, and community representatives. Questionnaires were distributed to 185 community representatives, of which 176 were completed and returned, while 14 key participants were interviewed separately. Data were collected using questionnaires and interview guides and analyzed using the Statistical Package for Social Sciences (SPSS). Descriptive statistics, Pearson correlation analysis, regression analysis, and thematic analysis were used to analyze the data. The findings indicated that financial incentives were positively associated with the growth of green entrepreneurship. Pearson correlation analysis revealed a positive and statistically significant relationship between financial incentives and green entrepreneurship growth (r = .677, p < .001). The regression model summary reported an R-value of .788 and an R-squared value of .621, suggesting that the model accounted for 62.1% of the variation in green entrepreneurship growth. The study highlights the relevance of financial support mechanisms, including grants, affordable loans, and other forms of financial assistance, in supporting the establishment and expansion of green enterprises. It concludes that financial incentives are an important factor associated with green entrepreneurship growth in Nyarugenge District. The study recommends improving access to green financing, increasing entrepreneurs’ awareness of available financial support, and strengthening the implementation of incentive programs to support sustainable business development.